Why Pay for Professional Representation?
Our team at Strategic Debt Resolutions, LLC is constantly evolving its' understanding of the changing economic climate. We offer our expertise, consistent mediation, and the sharpest tools to negotiate the best possible Strategic Loan Modification.
We continually study barriers to achieving an optimum result, while mitigating the confusion and frustration inherent in dealing directly with lenders. We recognize Homeowners need aggressive financial analysis while assembling the Modification Proposal and that the lender requires consistent intervention throughout the Negotiation Process.
It is important to understand that the lenders/ servicers/ investors represent their own self-interest when negotiating with the Homeowner. Professional mediators have a track record to best evaluate a favorable modification workout program.
Key Components for a Successful Modification
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Other Reasons to Hire Experienced Professionals
A Clear Financial Picture
The financial analysis that goes into presenting each hardship case is a critical component in demonstrating that the Homeowner fits somewhere between the 'goal posts' of enough hardship to qualify for a workout plan and the ability to maintain the monthly (or trial period) payments to avoid future default. In the case of a trial period, the burden is on the Homeowner to prove they are a viable candidate for a long-term permanent modification.
The financials presented will be verified in a variety of ways by the bank in order to meet their compliance requirements for full transparency and disclosure. The resubmitting of updated financial information such as banking statements, paystubs and updated P & L statements, etc. are a form of 'benchmarking' fluctuations in income and spending habits.
SDR believes it is important to monitor and proactively present these swings in Income and Expenses to the bank so the Homeowner does not get disqualified due to any misunderstandings or assumptions on the lender's part. This is especially important with employment that is cyclical throughout the year or for self-employed workers/ business owners that present financials that the bank may or may not be willing to take a risk. They are adverse to any indicators that would end up in a potential future default.
Financial Software to Determine Best Modification Program
We utilize the very same NPV (Net Present Value) analysis that lenders/ servicers use to determine the cost/ benefit of modification versus foreclosure. This valuable software gives us the edge in seeing which modification program best suits the client and helps us strategize a course of action if the lender is not in alignment with the analysis that benefits the Homeowner.
Time Consuming & Requires Patience
We know this is a full-time project for the Homeowner to stay on top of a dynamically changing environment, to fully understand the financial analysis needed, as well as run the endless problematic trails while pursuing a clear understanding of strategic options.
A Homeowner's existing mortgage that is undergoing a modification is actually a completely new individually underwritten loan (by the lender) with a new interest rate and possible change in the term (years). Millions of Homeowners still need financial relief in order to save their homes. The sheer volume of need has encumbered the lender/ servicer’s ability to address each Homeowner in a timely, effective and/ or satisfying manner. Our negotiators may need to re-negotiate with the lender or servicer more than once before accepting a result. We do not stop negotiating even if the initial modification proposal has been denied. We re-approach the lender/ servicer with the other programs not owned or guaranteed by Fannie Mae or Freddie Mac. There are many modification programs our negotiators are aware of that the Homeowner is "in the dark" about, and unfortunately, this advantage on the lender/ servicer/ investor's part is leveraged against them. Currently, the percentage of permanent modifications offered to Homeowners is extremely low. The banks or servicers of Mortgages have stated they are experiencing consistent problems in getting paperwork from the Homeowner in a timely and accurate way. The banks/ servicers have no obligation to tell you if any paperwork is still outstanding or if it didn't make it to the correct department; this has been used consistently as a reason for disqualification. Professional mediators are more able to know when a Homeowners rights are impinged upon and challenge the lender, or file complaints to state and federal agencies in order to protect the client rights.
Systems & Process Mismanagement
It is a well known problem in the industry that the bank or servicer 'loses' paperwork regularly or doesn't assign the file for review due to an incomplete submission. Repeated requests for documentation should be honored and followed up with in a timely way to ensure the best attempt for a positive result. It is our experience that Homeowners are feeling powerless and confused by the banks/ servicers' chronic re-organization and communication inconsistencies - resulting in mismanaged or missing paperwork.
An experienced mediator knows how to work within most banking institutions systems, even as they consistently evolve. Our primary mediator has 8 years of experience and has established many high level relationships with the lending institutions and loan servicers.
It is in the Homeowners best interest to hire a professional with expertise because many of the lenders or loan servicers are more responsive when communicating with mediators that present professionally packaged, complete files.
Low Conversion Rate from Trial Periods to Permanent Modifications
We know this process requires micro-management at all stages of the process. Our team of advocates at Strategic Debt Resolutions knows this is a full-time project for the Homeowner to stay on top of a dynamically changing environment, to fully understand the financial analysis needed, as well as run the endless problematic trails while pursuing a clear understanding of strategic options. We follow up at all times.
Recourse Avenues for Uncooperative Lenders
Experienced negotiators can stop/ postpone a foreclosure process. We would prefer a minimum of two weeks before the auction foreclosure sale date to be most effective and avoid a heart pounding start of our journey.